Chicago-based Telephone and Data Systems (TDS) has spent US$261m on regional operator BendBroadband.
Commenting on the transaction TDS Telecom’s CEO, David Wittwer, said it would help his company “achieve significant forward momentum in [its] cable…
Chicago-based Telephone and Data Systems (TDS) has spent US$261m on regional operator BendBroadband.
Commenting on the transaction TDS Telecom’s CEO, David Wittwer, said it would help his company “achieve significant forward momentum in [its] cable strategy”.
TDS’ acquisition of the family-owned cableco echoes its purchase of Baja Broadband last year for a similar sum.
TDS owns regional wireless operator US Cellular, fixed-line operator TDS Telecom, cableco Baja Broadband, and an IT solutions business. The group’s CEO, LeRoy Carlson Jnr, described BendBroadband as a “strategic addition”, adding that TDS was “committed to investing resources in adjacent businesses like cable, where we can leverage our expertise and competencies to support profitable growth”.
BendBroadband – which is headquartered and operates in Bend, Oregon – offers triple play services and generated US$70m in revenue last year. Its network passes 79,000 homes and the company has 36,000 video subscribers, 41,000 broadband subscribers and 22,000 voice subscribers.
TDS is also acquiring two affiliated companies as part of the deal: BendBroadband Vault, a tier III data centre; and Zolo Media, a cable advertising and broadcast business.
The deal is expected to close in the third quarter of 2014, pending regulatory approvals and other conditions.
RBC Capital Markets served as BendBroadband’s M&A adviser. Stoel Rives, Davis Wright Tremaine and Cinnamon Mueller served as legal counsel to BendBroadband. Sidley Austin served as legal counsel to TDS.
